Source: OPIS Prices Decreasing for all AZ and US Gasoline and Diesel fuel prices
For the week of August 16, 2010 gasoline prices are down 3.6 cents, down 3.1 cents, and down 0.6 cents for Phoenix, Tucson and Flagstaff, at 273.1 254.0 and 287.7 cents per gallon respectively compared to the prior week. U.S. regular retail gasoline prices decreased by 3.5 cents compared to the same time period of the prior week to 281.2 cents per gallon. The current price quoted is 5.5 cents higher than this time last year.
Weekly Phoenix diesel fuel prices decreased by 1.4 cents from the prior week at 296.2 cents per gallon compared to the same period of the previous week. Tucson diesel prices decreased by 1.7 cents to 295.8 cents per gallon compared to the prior week. And Flagstaff diesel fuel prices decreased 0.7 cents from the prior week at 304.8 cents per gallon for the week ending August 16, 2010. U.S. diesel fuel pricing decreased by 2.2 cents as compared to the same time-period of the previous week to 295.7 cents per gallon. Compared to last year at this time diesel fuel prices for the U.S. are higher by 30.5 cents compared to this time last year.
To view weekly gasoline and diesel prices plus graphs of other Arizona cities, click on the city name in the tables above.
Short-Term Energy and Summer Fuels Outlook
The U.S. Department of Energy's Energy Information Administration released an updated Short-Term Energy and Summer Fuels Outlook. Click here to view information.
This Week In Petroleum
Source: Energy Information Administration
Released on August 18, 2010
Northeast States move to reduce sulfur content in heating oil The Northeast region of the U.S., represented by the New England and Central Atlantic regions shown in Figure 1, typically account for over 80 percent of U.S. heating oil sales. As shown in Figure 2, the top 5 consuming States, in rank order, are New York, Massachusetts, Pennsylvania, Connecticut, and New Jersey. Heating oil is a distillate fuel, coming from the same boiling-range portion of crude oil as diesel fuel. However, unlike diesel fuel used in transportation, heating oil has no Federal sulfur content restrictions. Several northeastern States are leading a transition to cleaner burning heating fuels by decreasing sulfur content in heating oil. Table 1 outlines current State actions in this regard. It indicates that some States are reducing sulfur content to the ultra low sulfur levels now required in highway diesel fuels. Figure 1. The U.S. Northeast Region
Source: Energy Information Administration (EIA)
Figure 2. U.S. Residential Heating Oil Consumption
is Concentrated in the Northeast
Source: Fuel Oil and Kerosene Report 2008
The States are motivated by the desire for cleaner burning fuels that will be less polluting as well as having lower maintenance costs for fuel dealers and consumers. However, while maintenance costs may be lower, ultra low sulfur distillate fuels are more expensive to produce, transport, and store, Over the past two years, ultra low sulfur diesel fuel has typically sold for 5 to 10 cents per gallon more than high sulfur heating oil on the New York Harbor spot wholesale market. Initially, the change to ULSD for heating oil may limit import supply sources, as many parts of the world do not produce ultra low sulfur distillate fuels. During the winter (December through February), high sulfur distillate imports into the East Coast account for about 20 percent of this region’s total heating oil demand on average, and about 50 percent of distillate imports. Furthermore, during past cold snaps when supplies run short, high sulfur imports have provided most of the relief to the increased heating oil demand. The transition will present other challenges. Some refineries supplying the Northeast with heating oil will need to make investments to produce ultra low sulfur distillate fuel for this market. Terminal transitions to low sulfur heating oil will need to be made, as well as changes to supplies of low sulfur additives or blending components to create winter-blend heating oil. Table 1. Current Northeast State Regulatory Activities to Reduce Sulfur in Heating Oil
City or State |
Action |
Effective Date |
Status |
CT |
Mandates a schedule to lower sulfur content in heating oil and increase biodiesel blending, contingent on the passage of similar measures in NY, RI, and MA.* |
7/1/2011 |
Legislation passed, but contingent on other States |
ME |
Reduces sulfur content to 50 ppm starting January 1, 2016, and no more than 15 ppm starting January 1, 2018; distillate fuel used for manufacturing purposes is exempted. Reduces sulfur content in residual fuel oil to 0.5 percent by weight effective January 1, 2018. |
1/1/2016 |
Legislation passed; rulemaking proposed (in public comment period) |
NJ |
Reduces sulfur content to 500 ppm starting July 1, 2014, and no more than 15 ppm starting July 1, 2016. |
7/1/2014 |
Rulemaking proposed (administratively complete, awaiting signature) |
NJ |
Cuts allowable sulfur level in heating oil to 15 ppm.** |
7/1/2011 |
Legislation proposed |
NY |
Cuts allowable sulfur level in No. 2 Heating Oil to 15 ppm. |
7/1/2012 |
Legislation passed |
NY City |
Cuts allowable sulfur level in No. 4 Heating Oil to 1,500 ppm. |
10/1/2012 |
Legislation passed |
PA |
Cuts allowable sulfur levels to: 15 ppm for No.2 Heating Oil; 0.25 percent for No.4 heating oil; 0.5 percent for No. 5, No. 6 and heavier oils. |
5/1/2012 |
Rulemaking proposed (in public comment period) |
PA |
A bill introduced in the PA legislature would require all heating oil used for residential, commercial and industrial heating to have a sulfur content of 15 ppm or below. |
5/1/2011 |
Legislation proposed |
DC, DE, MA, MD, NH, RI, VT |
No actions to lower sulfur content are currently proposed.*** |
_ |
_ |
*Requires: sulfur reductions to 50 ppm by 7/1/2011 and 15 ppm by 7/1/2014; and increased biodiesel blending to 2 percent in 2011 and 20 percent by 2020.
**Includes all heating oil sold for residential, commercial or industrial uses within the State.
***Measures to lower sulfur content have been discussed in some States, but formal actions have not yet been taken. |
In response to both a spike in oil prices to new records and a slowing economy, commercial jet fuel purchases in 2008 fell 5.4 percent, as the 35-percent hike in fuel prices in 2008 was carried over into ticket prices, which, after inflation, rose 7.9 percent that year. The higher prices contributed to a decline in total revenue ton-miles (passengers and freight) of 4.0 percent. Air carriers responded to the fewer passengers and less freight by reducing capacity by 4.0 percent.
The jet fuel market decline continued into 2009. However, jet fuel costs and ticket price inflation were no longer the issues. Instead, it was the underlying economy: in the U.S., inflation-adjusted gross domestic product shrank 2.4 percent. As a result, total revenue ton-miles declined 7.9 percent and air carriers further reduced capacity by 6.5 percent. The lower capacity and utilization contributed to a 9.5-percent decline in the purchases of commercial jet fuel.
The most recent EIA Short-Term Energy Outlook, published yesterday, calls for a 0.1-percent decline in commercial jet fuel purchases in 2010, followed by a 1.8 percent increase in 2011. During these two years, real GDP is projected to increase by an average of 2.9 percent per year. The jet fuel consumption growth reflects the projection of continued but moderate increases in economic activity, partially offset by ongoing increases in fleet-wide fuel efficiencies. It also reflects airlines’ desire to restore the industry to profitability by constraining capacity expansions and, thereby, raising capacity utilization rates. As a result, ticket prices can be expected to firm up. It is unlikely that the levels of jet fuel purchases will reach those previously seen in 2007 for several years to come.
U.S. Average Retail Gasoline Prices Gain 5 Cents
The U.S. average retail price for regular gasoline increased almost five cents to $2.78 per gallon after increasing three out of the last four weeks by a total of six and a half cents. This week’s price is $0.14 per gallon higher than this time last year. Prices were up throughout the country, with the Midwest seeing the largest price increase of 6 cents to $2.76 per gallon, while Gulf Coast prices also rose almost 6 cents to $2.64 per gallon. East Coast and Rocky Mountain prices each gained close to four cents to reach $2.71 and $2.79 per gallon, respectively. Meanwhile, West Coast prices remained the highest in the Nation after adding almost 4 cents to average $3.11 per gallon; California prices increased over four cents to $3.17 per gallon. Retail diesel fuel prices fell a penny to $2.98 per gallon, $0.33 per gallon above last year. Price changes were mixed, with the East Coast falling two cents to average $2.98 per gallon. The Midwest and Gulf Coast prices were down by more than a penny to $2.95 per gallon and $2.93 per gallon, respectively. The Rocky Mountain region tallied the largest price increase, moving two cents higher to $3.01 per gallon. West Coast prices were the highest in the country, gaining half a cent to settle at $3.13 per gallon, while California prices increased slightly to $3.19 per gallon. Click here to continue article.
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